The X Factor Of Business Growth: Why It Pays To Have A Resource Manager

If I were to ask you what role a resource manager played in a business, would you know how to answer? If not, you aren’t alone! Many consulting and professional management companies equate resource management planning with an administrative task, but as a resource manager for twenty years, I can tell you there is so much more to it than that. Resource management planning can be defined in the following way:

It’s the efficient and effective deployment of an organization’s resources. These resources can include tangible resources such as goods and equipment, financial resources, and labor resources such as employees.

It includes planning, allocating, and scheduling of resources to tasks, which typically include manpower, machines, money, and materials.

It has an impact on schedules and budgets as well as resource leveling and smoothing. Many of the companies that I’ve worked at as a resource manager are consulting companies in which projects are sold and resources are staffed to complete the work.

Not sure what role a resource manager plays? Find out what may just be the X-Factor for your business success!

On the ground level, a resource manager helps to staff projects, onboard new hires, provide company leadership with ideas for building skillsets through training and hiring, and direct employees to needed information. On a deeper level, a resource manager works behind the scenes, always juggling and piecing together the jigsaw puzzle of finding the right employees for all current and future planned projects. When staffing resources in a consulting environment, an understanding of certain aspects of the project are necessary to make appropriate staffing decisions. Some of those things include the following:

Contract value of new project and level/cost of the resource. The resource manager needs to understand the contract value and profit margin of the new project. Most consulting firms are trying to achieve a specific margin to make a profit. This information directly drives the decisions regarding resources. Specifically, if you staff a higher cost resource, the project’s profit margin will be adversely affected. However, there are times when staffing a higher cost resource is appropriate because that resource may possess a higher degree of knowledge and be able to complete the work more quickly.

Skill set needed. Each client needs a specific skill set to do the work. Not every resource possesses all of the skills for the products/services that a consulting services company sells; therefore, knowledge of the skills that each resource possesses is critical. There are many times when, for a certain reason, a specific resource is needed for a client. When this happens, I have to evaluate what that resource is currently working on and then potentially shift his/her current work to other resources. Negotiation is the key in these situations. I will have to discuss the situation with each of the project managers that will be affected, and ascertain what stage the project is in and how critical the resource is to the project. Once I have all of that information, I can make a determination as to whether it is feasible to remove the needed resource from his/her current responsibilities. Many times the work that needs to be shifted is in mid-stream, so there can be a delicate balance that needs to occur. We want to maintain the level of work that the client is expecting and keep the project on track.

Availability of the resource. Of course, the resource has to be available to do the work. Another aspect of my job includes “smoothing” out schedules. I monitor the resources’ forecasted work to make sure that no one is grossly overbooked. Many times when this happens, it is because of a specific skill set that is needed during that period of time in which we have limited resources. If there is an opportunity for me to potentially shift work to other resources that have availability, I will take action.

Client’s physical location. Many times the client’s physical location is important. Staffing a resource that lives closer to the client is beneficial from a cost perspective as well as a life/work balance perspective.

In addition to staffing specific project work, it is also important that the resource manager understand the opportunities in the pipeline. Understanding the skills needed for upcoming opportunities as well as the skills of the resources on staff helps to identify gaps and inform potential hiring needs or areas for further training. I have had the satisfaction of advising many teams and watching how team members work together to create something that challenges them and leaves the client extremely happy. This type of success often leads to a greater chance of contract renewal in the future, greater employee satisfaction, and ultimately, profitability and business growth. If your company has a resource manager and you aren’t making full use of his or her skills, I encourage you to do so! And if you don’t currently staff a resource manager, consider the advantages to your organization should you do so. It is a critical part of growing your business properly. It’s your X Factor.